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FIA wants to reduce costs; turbo engines still causing dissent

June 14, 2012

Formula One is in cost cutting mode, trying to save money by introducing spending restrictions. Photo by LAT PHOTOGRAPHIC

The FIA World Motor Sport Council has confirmed that new spending restrictions are in the pipeline for Formula One teams, but made no reference to the cost of the new, turbocharged V6 powertrains that are scheduled to be mandatory in 2014.

After convening Friday [June 15] in Paris, the WMSC stated, “At their request, the FIA is having active discussions with teams regarding cost control. Any amendments to the Technical Regulations resulting from a further limit on expenditure on the chassis will be submitted to the WMSC via a fax vote before June 30. The intention is to help all teams participate in the World Championship in a fair and equal manner.”

This statement follows a call for more stringent cost restrictions by, among others, Ferrari president Luca di Montezemolo—as Autoweek reported earlier this week. The Prancing Horse’s boss did not refer directly to the controversial new engine formula either, but at least some of those calling for intervention to control the teams’ expenses have the hidden agenda of getting the new formula postponed, perhaps indefinitely. The most vociferous opponents of the new rules are Formula One CEO Bernie Ecclestone and the newly formed Formula One Promoters Association. Both think that such an engine will not sound good, and will not allow F1 to retain its perceived place at the top of the racing food chain.

Earlier, FIA president Jean Todt, who had called team executives to a meeting on the subject on the Monday following the Monaco Grand Prix, implied that the new formula would stay in place. Todt said of the 2014 rules structure, “We are discussing it, as we have been asked by 10 of our 12 teams to control costs. Our chief administrative officer, Damien Clermont, is talking to the financial heads of all the 12 teams concerning the chassis costs and with all the engine manufacturers about the engine costs. It is true that the package will be more expensive, but it is also true that the FIA has been in consultation with the engine suppliers in order to reduce the cost increase. For example, we have already agreed to a reduction in the number of power units. From eight per driver per season in 2012, we will reduce this to five per driver in 2014 and to four per driver per season in 2015.”

Today’s WMSC statement also confirmed that the FIA has not yet concluded negotiations with F1 over renewing the Concorde Agreement, which expires on Dec. 31.

“Constructive Concorde Agreement discussions are ongoing between the FIA and the commercial-rights holder, with the intention of finalizing an agreement in the coming weeks,” a statement said. “It was also decided that the deadline for the closing of entries be deferred to Sept. 30.”